Oh man, next to a harmonica, my coaxial copter is the best cat tormenter I've ever owned.

Micro copters like that will be a little wobbly when you're only about five inches off the ground due to air disturbances from the blades- get that thing up another seven inches or so, and you'll be surprised how stable it can be. Just be careful around objects like walls, ceilings, or any other big objects that might cause air disturbances. Once you get it up off the ground a little, you'll be able to see if it will hold a stable hover, if you need to make other adjustments, such as your battery may have shifted causing it to drift, or you need to adjust your 1/2 channel if it's spinning in place,etc.
I've got a four channel that is way too fast for inside the house, and has been in quite a few trees. My only advice for crashing is that if you're sure that you're going to crash, throttle down to try to minimize any potential damage to the gears, motors, etc.
Good luck!